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The cif China, Japan and Korea battery-grade lithium hydroxide price fell by 3.3% in the week to Thursday May 30 due to buyer reluctance at current prices, while the Chinese domestic lithium market held steady, with downstream consumers buying on a hand-to-mouth basis.

Hand-to-mouth buying in China
China’s domestic lithium market was unchanged this week with most reported prices rangebound at the current level. Downstream consumers remain in no hurry to purchase material and are unwilling to build up stocks of lithium compounds. Instead, consumer sources reported purchasing more on a hand-to-mouth basis.

“The lithium carbonate market in China remains stable, and we have no plans to adjust our prices in the coming June. Demand remains flat and we are currently supplying mainly our regular customers,” a second producer told Fastmarkets.

The technical and industrial grade lithium carbonate price (min 99% Li2CO3) has also stayed stable week on week with most deals concluded at 65,000-68,000 yuan per tonne.

Used in nickel-rich cathode batteries, the battery-grade lithium hydroxide monohydrate market price was stable week on week with no signs of price movement.

The micronized battery-grade lithium hydroxide price was also stable, staying at a 5,000-10,000 yuan per tonne premium to Fastmarkets’ standard batter-grade price range.

“We have been active this week selling our micro grade battery grade lithium hydroxide as high as 94,000 yuan per tonne,” a third lithium producer told Fastmarkets. “Our standard [battery-grade hydroxide] is being sold at 85,000 yuan per tonne.”

European, US prices plateau
After softening a week ago, European and US battery grade lithium carbonate and hydroxide spot market prices stabilized this week. Market participants reported slow trading activity in the region on expectation of lower prices in the coming weeks, following weaker prices in China.

“The European and US markets were stable week on week due to slow trading activity and consumers’ lower price expectations,” a fourth producer told Fastmarkets.

“We couldn’t sell any material this week and customers continue to hold expectations of lower prices”, a fifth producer told Fastmarkets. “The market is set to remain slow in the forthcoming weeks and probably playing catch up with the Asian market.”